Press Release: NeuroPace Reports Second Quarter 2026 Financial Results and Raises 2026 Revenue Guidance

Dow Jones08-12

--Q2 2026 total revenue of $22.8 million, including $22.5 million in RNS revenue representing 21% growth--

--Raises full year 2026 total revenue guidance to $99.5 million to $101.5 million, which assumes 21% to 23% growth in core RNS$(R)$ revenue from existing indications--

--Preparation remains on track for SIR meeting with FDA regarding the IGE PMA supplement, supported by 24-month NAUTILUS data showing a 100% median reduction in GTC seizures among evaluable patients(1) --

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--August 11, 2026-- 

NeuroPace, Inc. (Nasdaq: NPCE), a medical device company focused on transforming the lives of people living with epilepsy, today reported financial results for the second quarter ended June 30, 2026, and provided a corporate update.

Second Quarter 2026 Financial Highlights

   --  Total revenue of $22.8 million in the second quarter of 2026 
 
   --  RNS System revenue of $22.5 million in the quarter, representing 21.3% 
      growth compared to the second quarter of 2025 
 
   --  Net loss in the second quarter of 2026 was ($6.2) million compared to 
      ($10.0) million in the second quarter of 2025 
 
   --  Adjusted EBITDA loss of ($2.8) million for the second quarter of 2026, 
      an improvement of $2.1 million compared to a loss of ($4.9) million in 
      the second quarter of 2025 

Second Quarter 2026 Operational & Strategic Highlights

   --  Launched ECoG Assistant$(TM)$, the first in a planned suite of NeuroPace 
      AI-based clinical decision support tools, uniquely enabled by NeuroPace's 
      proprietary long-term intracranial EEG dataset and designed to help 
      physicians more efficiently review ECoG data and inform individualized 
      treatment decisions 
 
   --  Published 18-month NAUTILUS results in Epilepsia, a leading 
      peer-reviewed epilepsy journal, providing Level 1 evidence from the first 
      randomized controlled neuromodulation trial in drug-resistant IGE and 
      demonstrating a 77% median reduction in GTC seizures. 
 
   --  Reached new all-time highs in active prescribers, accounts and patient 
      pipeline 

"Second-quarter performance showed continued momentum in our core RNS business driven by increased adoption within our current focal epilepsy indication," said Joel Becker, Chief Executive Officer of NeuroPace. "We also maintained strong financial discipline while continuing to invest in the long-term growth of the business and advance our product roadmap. The launch of ECoG Assistant marked an important first-of-its-kind step in extending the differentiated capabilities of the RNS System, building on NeuroPace's unique ability to continuously monitor and record each patient's intracranial EEG data, efficiently identify ECoGs of interest and support more individualized therapy, reinforcing a data advantage that other neuromodulation platforms cannot replicate.

"Looking ahead, we remain focused on sustaining momentum in our core business. Additionally, we look forward to continuing our engagement with the FDA regarding the path forward for our IGE PMA Panel Track supplement and remain on track with our clinical and regulatory timelines."

 
____________________ 
(1)  Based on participants who received stimulation for 23 of 24 months 
     following implant and had completed 24-month follow-up with evaluable 
     data. 
 

Discontinued Operations & Basis of Presentation

Following the expiration of the Company's distribution agreement with DIXI Medical and the related wind-down, the Company concluded in the second quarter of 2026 that the abandonment of its DIXI Medical product operations met the criteria for presentation as a discontinued operation under ASC 205-20. Unless otherwise noted, the results discussed in this release reflect continuing operations; prior-period amounts have been reclassified accordingly, with no effect on previously reported net loss, total assets, total liabilities, or total stockholders' equity. See the accompanying financial statements for the GAAP presentation of continuing and discontinued operations.

Second Quarter 2026 Financial Results

RNS System revenue totaled $22.5 million in the second quarter of 2026, representing growth of 21.3% compared to the second quarter of 2025. Total revenue in the second quarter of 2026 grew 17% to $22.8 million, compared with revenue of $19.5 million in the second quarter of 2025.

Non-GAAP gross margin for the second quarter of 2026 was 83.4%, compared with 84.0% in the second quarter of 2025. The slight year-over-year decline was driven by slightly higher material costs partially offset by favorable pricing. Total GAAP gross margin from continuing operations in the second quarter of 2026 was 82.8%.

Non-GAAP operating expenses in the second quarter of 2026 were $21.9 million, compared with $21.3 million in the second quarter of 2025. GAAP operating expenses in the second quarter of 2026 were $24.0 million.

Non-GAAP sales and marketing expense in the second quarter of 2026 was $11.5 million, compared with $10.7 million in the second quarter of 2025. The year-over-year increase was largely due to personnel-related expenses associated with ongoing scaling of commercial activities and other sales-related expenses.

Non-GAAP research and development expense in the second quarter of 2026 was $6.3 million, compared with $6.0 million in the second quarter of 2025. The year-over-year increase was primarily driven by an increase in product development-related expenses associated with a next-generation platform and AI-enabled tools.

Non-GAAP general and administrative expense in the second quarter of 2026 was $4.1 million compared with $4.6 million in the second quarter of 2025. The year-over-year decline was largely due to one-time expenses incurred in the prior period related to executive transition, partially offset by an increase in personnel-related expenses in the current period.

Non-GAAP loss from operations was ($2.8) million in the second quarter of 2026, compared with loss from operations of ($5.0) million in the second quarter of 2025. Non-GAAP net loss was ($3.9) million for the second quarter of 2026 compared with net loss of ($6.8) million in the second quarter of 2025. GAAP net loss in the second quarter of 2026 was ($6.2) million.

The Company's cash, cash equivalents, short-term investments and restricted cash balance as of June 30, 2026 was $51.9 million compared with $54.8 million at the end of the prior quarter. Long-term borrowings totaled $59.0 million as of June 30, 2026.

Full Year 2026 Financial Guidance

   --  Increase total revenue guidance for full year 2026 to between $99.5 
      million and $101.5 million, compared with previously issued guidance of 
      $99 million to $101 million. The higher guidance reflects expected 
      service revenue of approximately $1 million, up from approximately 
      $500,000 previously, while the underlying RNS growth outlook of 21% to 
      23% remains unchanged. Consistent with previous guidance, this range 
      excludes any contribution from idiopathic generalized epilepsy indication 
      expansion. 
   --  Increase full year non-GAAP gross margin to between 82.0% and 83.0%, an 
      increase compared to 81.5% to 82.5% previously 
   --  Reiterate full year non-GAAP operating expenses to be between $90 
      million and $92 million, excluding approximately $10 million in 
      stock-based compensation, a non-cash expense 
   --  Increase Adjusted EBITDA to be between ($7.5) million and ($8.5) 
      million compared to previous guidance between ($8.5) million to ($9.5) 
      million 

Non-GAAP Measure

To supplement NeuroPace's condensed financial statements presented in accordance with GAAP, the Company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include Adjusted EBITDA, non-GAAP gross margin, non-GAAP cost of goods sold, non-GAAP sales and marketing expense, non-GAAP research and development expense, non-GAAP general and administrative expense, non-GAAP operating expenses, non-GAAP loss from operations, and non-GAAP net loss from operations. NeuroPace believes the presentation of its non-GAAP financial measures enhances the user's overall understanding of the Company's historical financial performance. The presentation of the Company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the Company's financial results prepared in accordance with GAAP, and the Company's non-GAAP measures may be different from non-GAAP measures used by other companies.

Webcast and Conference Call Information

NeuroPace will host a conference call to discuss the second quarter and full year 2026 financial results after market close on Tuesday, August 11, 2026, at 4:30 P.M. Eastern Time. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at (click here). Individuals interested in participating in the call via telephone may access the call by dialing + 1 (833) 461-5787 and referencing Conference ID 246 660 202. The webcast will be archived on the Company's investor relations website at https://investors.neuropace.com/news-and-events/events and will be available for replay for at least 90 days after the event.

About NeuroPace, Inc.

Based in Mountain View, Calif., NeuroPace is a medical device company focused on transforming the lives of people living with epilepsy by reducing or eliminating the occurrence of debilitating seizures. Its novel and differentiated RNS System is the first and only commercially available, brain-responsive platform that delivers personalized, real-time treatment at the seizure source. This platform can drive a better standard of care for patients living with drug-resistant epilepsy and has the potential to offer a more personalized solution and improved outcomes to the large population of patients suffering from other brain disorders.

Forward Looking Statements

This press release may contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "aims," "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "intends," "may," "plans," "possible," "potential," "seeks," "will" and variations of these words or similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these words. NeuroPace may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements regarding: Expectations regarding the Company's future revenue and growth based on a continued operations basis, excluding revenue from the DIXI Medical product operations; NeuroPace's expectations, forecasts and beliefs with respect to potential indication expansion for its RNS System and its software, technology and other product development efforts; increasing access to and adoption of RNS therapy as the standard of care in drug-resistant epilepsy; NeuroPace's continued execution on its long-term revenue growth strategy, including with respect to sustained revenue growth and long-term value creation. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including: actual operating results may differ significantly from any guidance provided; uncertainties related to market acceptance and adoption of NeuroPace's RNS System and impacts to NeuroPace's revenue for 2026 and in the future; risks that NeuroPace's operating expenses could be higher than anticipated and that it could use its cash resources sooner than expected; risks that NeuroPace's gross margin may be lower than forecast; risks related to the pricing of the RNS System and availability of adequate reimbursement for the procedures to implant the RNS System and for clinicians to provide ongoing care for patients treated with the RNS System; risks related to regulatory compliance and expectations for regulatory approvals to expand the market for NeuroPace's RNS System, including risks related to the NAUTILUS submission and the forthcoming Submission Issue Request $(SIR)$ Q-Sub process; risks related to product development, including risks related to the development of AI-powered software, including NeuroPace AI(TM) and the next generation device platform; risks related to NeuroPace's reliance on contractors and other third parties, including single-source suppliers and vendors; and other important factors. These and other risks and uncertainties include those described more fully in the section titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in NeuroPace's public filings with the U.S. Securities and Exchange Commission (SEC), including its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed with the SEC on August 11, 2026, as well as any other reports that it may file with the SEC in the future. Forward-looking statements contained in this announcement are based on information available to NeuroPace as of the date hereof. NeuroPace undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing NeuroPace's views as of any date subsequent to the date of this press release and should not be relied upon as a prediction of future events. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of NeuroPace.

 
                                NeuroPace, Inc. 
           Condensed Statements of Operations and Comprehensive Loss 
                                  (unaudited) 
 
                        Three Months Ended June 
                                  30,               Six Months Ended June 30, 
                       --------------------------  ---------------------------- 
(in thousands, except 
for share and per 
share amounts)             2026          2025          2026          2025 
                        ----------    ----------    ----------    ---------- 
Revenue                $    22,826   $    19,501   $    44,829   $    37,822 
Cost of goods sold           3,920         3,288         7,912         6,478 
                        ----------    ----------    ----------    ---------- 
    Gross profit            18,906        16,213        36,917        31,344 
Operating expenses: 
  Sales and marketing       12,124        11,489        23,707        21,894 
  Research and 
   development               6,898         6,845        14,087        14,285 
  General and 
   administrative            5,027         6,068         9,871        10,114 
                        ----------    ----------    ----------    ---------- 
   Total operating 
    expenses                24,049        24,402        47,665        46,293 
                        ----------    ----------    ----------    ---------- 
    Loss from 
     continuing 
     operations             (5,143)       (8,189)      (10,748)      (14,949) 
Interest income                523           718         1,088         1,511 
Interest expense            (1,539)       (2,059)       (3,060)       (4,212) 
Other income 
 (expense), net                (41)         (486)         (206)         (568) 
                        ----------    ----------    ----------    ---------- 
      Net loss and 
       comprehensive 
       loss from 
       continuing 
       operations      $    (6,200)  $   (10,016)  $   (12,926)  $   (18,218) 
                        ----------    ----------    ----------    ---------- 
      Net income from 
       discontinued 
       operations      $        --   $     1,365   $        37   $     2,978 
                        ----------    ----------    ----------    ---------- 
       Net loss and 
        comprehensive 
        loss           $    (6,200)  $    (8,651)  $   (12,889)  $   (15,240) 
                        ==========    ==========    ==========    ========== 
 
Net loss per share 
 from continuing 
 operations 
 attributable to 
 common stockholders, 
 basic and diluted     $     (0.18)  $     (0.30)  $     (0.38)  $     (0.57) 
                        ==========    ==========    ==========    ========== 
Net income per share 
 from discontinued 
 operations 
 attributable to 
 common stockholders, 
 basic and diluted     $      0.00   $      0.04   $      0.00   $      0.10 
                        ==========    ==========    ==========    ========== 
Net loss per share 
 attributable to 
 common stockholders, 
 basic and diluted     $     (0.18)  $     (0.26)  $     (0.38)  $     (0.47) 
                        ==========    ==========    ==========    ========== 
Weighted-average 
 shares used in 
 computing net loss 
 per share 
 attributable to 
 common stockholders, 
 basic and diluted      34,104,430    32,863,031    33,911,692    32,175,789 
                        ==========    ==========    ==========    ========== 
 
 
                            NeuroPace, Inc. 
                        Condensed Balance Sheets 
                               (unaudited) 
 
                                             June 30,     December 31, 
(in thousands, except for share and per 
share amounts)                                 2026           2025 
                                             --------       --------- 
Assets 
Current assets: 
    Cash and cash equivalents               $  12,538    $     21,692 
    Short-term investments                     39,161          39,366 
    Accounts receivable                        14,930          12,936 
    Inventory                                  18,111          14,862 
    Prepaid expenses and other current 
     assets                                     1,453           1,438 
    Current assets of discontinued 
     operations                                    --           3,779 
                                             --------       --------- 
        Total current assets                   86,193          94,073 
Property and equipment, net                     1,243           1,125 
Operating lease right-of-use asset              9,216          10,132 
Restricted cash                                   241             122 
Other assets                                       98             113 
                                             --------       --------- 
        Total assets                        $  96,991    $    105,565 
                                             ========       ========= 
Liabilities and Stockholders' Equity 
Current liabilities: 
    Accounts payable                        $   4,204    $      1,776 
    Accrued liabilities                        10,850          13,184 
    Operating lease liability                   2,256           2,117 
    Deferred revenue                              123             141 
    Current liabilities of discontinued 
     operations                                    --             596 
                                             --------       --------- 
        Total current liabilities              17,433          17,814 
Long-term debt                                 59,014          58,884 
Operating lease liability, net of current 
 portion                                        8,661           9,836 
                                             --------       --------- 
        Total liabilities                      85,108          86,534 
                                             --------       --------- 
Stockholders' equity: 
    Common stock, $0.001 par value                 34              34 
    Additional paid-in capital                577,153         571,412 
    Accumulated deficit                      (565,304)       (552,415) 
                                             --------       --------- 
        Total stockholders' equity             11,883          19,031 
                                             --------       --------- 
          Total liabilities and 
           stockholders' equity             $  96,991    $    105,565 
                                             ========       ========= 
 
 
                          NeuroPace, Inc. 
                Condensed Statements of Cash Flows 
                            (unaudited) 
 
                        Three Months Ended   Six Months Ended June 
                             June 30,                 30, 
                        -------------------  ---------------------- 
(in thousands)            2026      2025       2026       2025 
                         ------    -------    -------    ------- 
Cash flows from 
operating activities 
Net loss                $(6,200)  $ (8,651)  $(12,889)  $(15,240) 
Adjustments to 
reconcile net loss to 
net cash used in 
operating activities: 
    Stock-based 
     compensation 
     expense              2,303      3,228      4,581      5,854 
    Depreciation             66         55        126        104 
    Amortization of 
     debt discount and 
     issuance costs          70         55        138        104 
    Non-cash interest 
     expense                 80        177        157        390 
    Loss on debt 
     extinguishment          --        527         --        527 
    Amortization of 
     right-of-use 
     asset                  464        422        917        835 
    Unrealized loss 
     (gain) on 
     short-term 
     investments             41        (41)       206         41 
    Inventory 
     write-downs             68         49        144         93 
    Loss on disposal 
     of property and 
     equipment               --         --         --          2 
    Changes in 
    operating assets 
    and liabilities: 
       Accounts 
        receivable         (141)     1,881       (249)      (704) 
       Inventory         (1,485)    (2,815)    (1,360)    (3,058) 
       Prepaid 
        expenses and 
        other assets         63        521        (14)       671 
       Accounts 
        payable            (212)       737      1,983      1,703 
       Accrued 
        liabilities       1,506      2,213     (2,489)      (120) 
       Deferred 
        revenue              (3)        17        (18)       141 
       Operating lease 
        liabilities        (523)      (461)    (1,036)      (911) 
                         ------    -------    -------    ------- 
           Net cash 
            used in 
            operating 
            activities   (3,903)    (2,086)    (9,803)    (9,568) 
                         ------    -------    -------    ------- 
Cash flows from 
investing activities 
Acquisition of 
 property and 
 equipment                 (125)      (168)      (242)      (205) 
                         ------    -------    -------    ------- 
           Net cash 
            used in 
            investing 
            activities     (125)      (168)      (242)      (205) 
                         ------    -------    -------    ------- 
Cash flows from 
financing activities 
Proceeds from issuance 
 of common stock in 
 follow-on offering, 
 net of underwriting 
 discounts and 
 commissions                 --       (561)        --     69,704 
Repurchase of common 
 stock from KCK Ltd.         --         --         --    (49,546) 
Proceeds from issuance 
 of common stock under 
 employee plans           1,377        766      1,387      1,151 
Taxes withheld and 
 paid related to net 
 share settlement of 
 equity awards              (51)      (174)      (227)      (402) 
Proceeds from 
 At-The-Market 
 offering, net of 
 sales commission            --         --         --        232 
Proceeds from debt, 
 net of discounts and 
 issuance costs              --     58,568         --     58,568 
Payment of annual debt 
 fee                       (150)        --       (150)        -- 
Repayment of debt            --    (60,507)        --    (60,507) 
                         ------    -------    -------    ------- 
           Net cash 
            provided 
            by (used 
            in) 
            financing 
            activities    1,176     (1,908)     1,010     19,200 
                         ------    -------    -------    ------- 
Net increase 
 (decrease) in cash 
 and cash equivalents    (2,852)    (4,162)    (9,035)     9,427 
Cash, cash equivalents 
 and restricted cash 
 at the Beginning of 
 Period                  15,631     27,141     21,814     13,552 
                         ------    -------    -------    ------- 
Cash, cash equivalents 
 and restricted cash 
 at the End of Period   $12,779   $ 22,979   $ 12,779   $ 22,979 
                         ======    =======    =======    ======= 
Reconciliation of 
cash, cash equivalents 
and restricted cash to 
balance sheets: 
  Cash and cash 
   equivalents          $12,538   $ 22,857   $ 12,538   $ 22,857 
  Restricted cash           241        122        241        122 
                         ------    -------    -------    ------- 
Cash, cash equivalents 
 and restricted cash 
 in balance sheets      $12,779   $ 22,979   $ 12,779   $ 22,979 
                         ======    =======    =======    ======= 
 
 
                              NeuroPace, Inc. 
 Table 1. 2025 GAAP to Non-GAAP Reconciliations from Continuing Operations 
                                 (unaudited) 
 
                                 Three Months Ended              Year Ended 
                     ------------------------------------------  ----------- 
                      March                            December 
                       31,     June 30,    September     31,      December 
(in thousands)         2025       2025     30, 2025      2025     31, 2025 
                     --------  ---------  -----------  --------  ----------- 
RNS revenue          $18,151   $ 18,564    $  22,580   $22,374   $ 81,669 
Service revenue          170        937          771       886      2,764 
                      ------    -------       ------    ------    ------- 
  Revenue            $18,321   $ 19,501    $  23,351   $23,260   $ 84,433 
                      ======    =======       ======    ======    ======= 
 
GAAP cost of goods 
 sold                $ 3,190   $  3,288    $   4,181   $ 4,405   $ 15,064 
  Stock-based 
   compensation          178        173          168       175        694 
                      ------    -------       ------    ------    ------- 
    Non-GAAP cost 
     of goods sold   $ 3,012   $  3,115    $   4,013   $ 4,230   $ 14,370 
                      ======    =======       ======    ======    ======= 
 
GAAP sales and 
 marketing expense   $10,405   $ 11,489    $  12,025   $10,713   $ 44,632 
  Stock-based 
   compensation          783        761          781       727      3,052 
                      ------    -------       ------    ------    ------- 
    Non-GAAP sales 
     and marketing 
     expense         $ 9,622   $ 10,728    $  11,244   $ 9,986   $ 41,580 
                      ======    =======       ======    ======    ======= 
 
GAAP research and 
 development 
 expense             $ 7,440   $  6,845    $   6,576   $ 7,027   $ 27,888 
  Stock-based 
   compensation          872        865          821       848      3,406 
                      ------    -------       ------    ------    ------- 
    Non-GAAP 
     research and 
     development 
     expense         $ 6,568   $  5,980    $   5,755   $ 6,179   $ 24,482 
                      ======    =======       ======    ======    ======= 
 
GAAP general and 
 administrative 
 expense             $ 4,046   $  6,068    $   4,594   $ 4,382   $ 19,090 
  Stock-based 
   compensation          793      1,429          858       857      3,937 
                      ------    -------       ------    ------    ------- 
    Non-GAAP 
     general and 
     administrative 
     expense         $ 3,253   $  4,639    $   3,736   $ 3,525   $ 15,153 
                      ======    =======       ======    ======    ======= 
 
GAAP operating 
 expenses            $21,891   $ 24,402    $  23,195   $22,122   $ 91,610 
  Stock-based 
   compensation        2,448      3,055        2,460     2,432     10,395 
                      ------    -------       ------    ------    ------- 
    Non-GAAP 
     operating 
     expenses        $19,443   $ 21,347    $  20,735   $19,690   $ 81,215 
                      ======    =======       ======    ======    ======= 
 
GAAP loss from 
 continuing 
 operations          $(6,760)  $ (8,189)   $  (4,025)  $(3,267)  $(22,241) 
  Stock-based 
   compensation        2,626      3,228        2,628     2,607     11,089 
                      ------    -------       ------    ------    ------- 
  Non-GAAP loss 
   from continuing 
   operations        $(4,134)  $ (4,961)   $  (1,397)  $  (660)  $(11,152) 
    Depreciation          49         55           54        80        238 
                      ------    -------       ------    ------    ------- 
      Adjusted 
       EBITDA from 
       continuing 
       operations 
       (Non-GAAP)    $(4,085)  $ (4,906)   $  (1,343)  $  (580)  $(10,914) 
                      ======    =======       ======    ======    ======= 
 
GAAP loss from 
 continuing 
 operations          $(6,760)  $ (8,189)   $  (4,025)  $(3,267)  $(22,241) 
  Interest and 
   other income 
   (expense), net     (1,442)    (1,827)        (896)     (962)    (5,127) 
                      ------    -------       ------    ------    ------- 
    GAAP net loss 
     from 
     continuing 
     operations      $(8,202)  $(10,016)   $  (4,921)  $(4,229)  $(27,368) 
      Stock-based 
       compensation    2,626      3,228        2,628     2,607     11,089 
                      ------    -------       ------    ------    ------- 
        Non-GAAP 
         net loss 
         from 
         continuing 
         operations  $(5,576)  $ (6,788)   $  (2,293)  $(1,622)  $(16,279) 
                      ======    =======       ======    ======    ======= 
 
 
 NeuroPace, Inc. Table 2. 2026 GAAP to Non-GAAP Reconciliations from 
                  Continuing Operations (unaudited) 
 
                                                         Six Months 
                             Three Months Ended             Ended 
                       ------------------------------  --------------- 
(in thousands)         March 31, 2026  June 30, 2026    June 30, 2026 
                       --------------  --------------  --------------- 
RNS revenue             $     21,689    $     22,524    $    44,213 
Service revenue                  314             302            616 
                           ---------       ---------       -------- 
  Revenue               $     22,003    $     22,826    $    44,829 
                           =========       =========       ======== 
 
GAAP cost of goods 
 sold                   $      3,992    $      3,920    $     7,912 
  Stock-based 
   compensation                  138             126            264 
                           ---------       ---------       -------- 
    Non-GAAP cost of 
     goods sold         $      3,854    $      3,794    $     7,648 
                           =========       =========       ======== 
 
GAAP sales and 
 marketing expense      $     11,583    $     12,124    $    23,707 
  Stock-based 
   compensation                  595             650          1,245 
                           ---------       ---------       -------- 
    Non-GAAP sales 
     and marketing 
     expense            $     10,988    $     11,474    $    22,462 
                           =========       =========       ======== 
 
GAAP research and 
 development expense    $      7,189    $      6,898    $    14,087 
  Stock-based 
   compensation                  713             624          1,337 
                           ---------       ---------       -------- 
    Non-GAAP research 
     and development 
     expense            $      6,476    $      6,274    $    12,750 
                           =========       =========       ======== 
 
GAAP general and 
 administrative 
 expense                $      4,844    $      5,027    $     9,871 
  Stock-based 
   compensation                  832             903          1,735 
                           ---------       ---------       -------- 
    Non-GAAP general 
     and 
     administrative 
     expense            $      4,012    $      4,124    $     8,136 
                           =========       =========       ======== 
 
GAAP operating 
 expenses               $     23,616    $     24,049    $    47,665 
  Stock-based 
   compensation                2,140           2,177          4,317 
                           ---------       ---------       -------- 
    Non-GAAP 
     operating 
     expenses           $     21,476    $     21,872    $    43,348 
                           =========       =========       ======== 
 
GAAP loss from 
 continuing 
 operations             $     (5,605)   $     (5,143)   $   (10,748) 
  Stock-based 
   compensation                2,278           2,303          4,581 
                           ---------       ---------       -------- 
    Non-GAAP loss 
     from continuing 
     operations         $     (3,327)   $     (2,840)   $    (6,167) 
      Depreciation                60              66            126 
                           ---------       ---------       -------- 
        Adjusted 
         EBITDA from 
         continuing 
         operations 
         (Non-GAAP)     $     (3,267)   $     (2,774)   $    (6,041) 
                           =========       =========       ======== 
 
GAAP loss from 
 continuing 
 operations             $     (5,605)   $     (5,143)   $   (10,748) 
  Interest and other 
   income (expense), 
   net                        (1,121)         (1,057)        (2,178) 
                           ---------       ---------       -------- 
      GAAP net loss 
       from 
       continuing 
       operations       $     (6,726)   $     (6,200)   $   (12,926) 
        Stock-based 
         compensation          2,278           2,303          4,581 
                           ---------       ---------       -------- 
          Non-GAAP 
           net loss 
           from 
           continuing 
           operations   $     (4,448)   $     (3,897)   $    (8,345) 
                           =========       =========       ======== 
 
 
                              NeuroPace, Inc. 
                 Table 3. GAAP to Non-GAAP Reconciliations 
                            2026 Revised Guidance 
 
 
(in thousands)                                            2026 Guidance 
                                                      ---------------------- 
RNS revenue                                              $98,500 to $100,500 
Service revenue                                                       1,000 
                                                      ---------------------- 
  Revenue                                                $99,500 to $101,500 
                                                      ====================== 
 
GAAP gross margin                                             81.5% to 82.5% 
  Stock-based compensation                                           50 bps 
                                                      ---------------------- 
    Non-GAAP gross margin                                     82.0% to 83.0% 
                                                      ====================== 
 
GAAP sales and marketing expense                          $49,000 to $51,000 
  Stock-based compensation                                            3,000 
                                                      ---------------------- 
    Non-GAAP sales and marketing expense                  $46,000 to $48,000 
                                                      ====================== 
 
GAAP research and development expense                               $30,000 
  Stock-based compensation                                            3,000 
                                                      ---------------------- 
    Non-GAAP research and development expense                       $27,000 
                                                      ====================== 
 
GAAP general and administrative expense                             $21,000 
  Stock-based compensation                                            4,000 
                                                      ---------------------- 
    Non-GAAP general and administrative expense                     $17,000 
                                                      ====================== 
 
GAAP operating expenses                                 $100,000 to $102,000 
  Stock-based compensation                                           10,000 
                                                      ---------------------- 
    Non-GAAP operating expenses                           $90,000 to $92,000 
                                                      ====================== 
 
GAAP loss from operations                             ($18,500) to ($19,500) 
  Stock-based compensation (including gross margin)                  10,500 
                                                      ---------------------- 
    Non-GAAP loss from operations                         (8,000) to (9,000) 
      Depreciation                                                      500 
                                                      ---------------------- 
        Adjusted EBITDA (Non-GAAP)                      ($7,500) to ($8,500) 
                                                      ====================== 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260811453255/en/

 
    CONTACT:    Investor Contact: 

Scott Schaper

Head of Investor Relations

sschaper@neuropace.com

investors@neuropace.com

 
 

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